Oklahoma Property and Casualty Adjuster Practice Test: Oklahoma law, Part 2

Correct answer: A. Issuing a partial payment check that releases all liability

Section 1250.5(9) lists issuing checks or drafts in partial settlement of a loss under a specified coverage that contain language releasing the insurer or its insured from total liability. Under 1250.3(B), a listed act is an unfair practice when flagrant and in conscious disregard of the Act, or frequent enough to show a general business practice. Requiring policy proofs, written denials citing provisions and asking to inspect property are proper.

Reference: 36 O.S. 1250.3(B); 36 O.S. 1250.5(6) and (9)

Correct answer: D. As a total loss, because repairs plus salvage reach at least $14,000

Section 1250.8(M) defines a total loss as one where the repair cost plus the salvage value meets or exceeds the vehicle's pre-loss actual cash value as shown in used car dealer guidebooks. Here $11,200 + $3,100 = $14,300, which exceeds $14,000. Looking at the repair cost alone, or at a percentage threshold, ignores the salvage value the statute adds to the comparison.

Reference: 36 O.S. 1250.8(M)

Correct answer: A. The insurer is the prevailing party and may recover fees and costs

Section 3629(B) requires the insurer to make a written offer of settlement or rejection within 60 days of receiving a proof of loss, and it awards costs and attorney fees to the prevailing party. The insurer prevails when the judgment does not exceed its written offer, as here. Only when the insured prevails does the court add 15% annual interest from the date the loss was payable.

Reference: 36 O.S. 3629(B)

Correct answer: B. It gave two blank forms, a bold 60-day warning and a 60-day extension

Section 4805 bars an insurer from asserting the insured's failure to file a sworn proof of loss within 60 days unless it pleads and proves it furnished two blank proof of loss forms bearing a conspicuous bold warning, or the warning in an instruction letter, and gave a written extension of 60 days from receipt of the blanks. The parties cannot waive these requirements by agreement.

Reference: 36 O.S. 4805; 36 O.S. 3629(A)

Correct answer: C. It is void as against public policy and cannot be enforced

Section 1230(B) bars anyone from soliciting or accepting an assignment of post-loss benefits for property damage under an auto collision or comprehensive, residential property or commercial property policy, and makes such an agreement void and unenforceable. Assignments to mortgagees, federally insured lenders or later buyers, and liability coverage, are excepted. Greta may still have the insurer pay the contractor directly under 1230(E).

Reference: 36 O.S. 1230 (Laws 2025, c. 444)

Correct answer: B. $151,400

Section 2007(A)(1) caps the association at $150,000 per claimant for covered claims other than workers' compensation and cybersecurity claims, and at $10,000 per policy for return of unearned premium. Diego receives $150,000 on the fire claim plus his full $1,400 of unearned premium, for $151,400. The $160,000 answer wrongly adds the full $10,000 premium cap instead of the amount actually owed.

Reference: 36 O.S. 2007(A)(1)

Correct answer: C. Ocean marine insurance

Section 2003 applies the Act to all kinds of direct insurance except life, annuity, health and disability, ocean marine, fidelity and surety bonds, title, mortgage and financial guaranty, credit and warranty coverage, and government insurance. Workers' compensation claims are not only covered but paid in full under 2007(A)(1)(a). Surplus lines insurers are not member insurers under 2004, so their policies are not covered.

Reference: 36 O.S. 2003; 36 O.S. 2004(11); 36 O.S. 2007(A)(1)(a)

Correct answer: A. $75,000

Oklahoma's minimum limits for policies issued or renewed on or after April 1, 2005 are $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. Bodily injury payments of $25,000, $15,000 and $12,000 total $52,000, capped at $50,000, and property damage is capped at $25,000, for $75,000 in all. The $77,000 answer ignores the per-accident cap.

Reference: 47 O.S. 7-103(2); 47 O.S. 7-324(b)

Correct answer: D. The rejection stays valid until a named insured requests UM in writing

Section 3636(A) and (G) require uninsured motorist coverage in every Oklahoma auto liability policy unless a named insured rejects it in writing. A signed rejection or lower-limit selection remains valid for the life of the policy and its renewals, replacements or amendments by the same insurer or its affiliates, and the insurer need not re-offer the coverage. It continues until a named insured asks in writing to add the coverage.

Reference: 36 O.S. 3636(A), (G) and (H)

Correct answer: A. The other car counts as uninsured; the UM limits do not stack

Section 3636(C) treats an insured vehicle whose liability limits are less than the claim as an uninsured motor vehicle, so Oklahoma UM coverage also works as underinsured coverage. Under 3636(B), policies issued, renewed or reinstated after November 1, 2014 do not stack or aggregate limits unless the insurer expressly provides for it. Section 3636(F) adds that the at-fault driver's payment does not reduce Kofi's UM limits.

Reference: 36 O.S. 3636(B), (C) and (F)

Correct answer: D. Pay Lena the tentative settlement amount within 60 days

Under 3636(F), once the insured gives certified-mail notice of a tentative settlement for the liability limit, with documentation of losses and authorizations, the UM insurer has 60 days to substitute its own payment of the tentative settlement amount. It then takes over the insured's right of recovery. If it does not pay within 60 days, it has no right to the proceeds of any settlement or judgment.

Reference: 36 O.S. 3636(F)

Correct answer: D. It may not raise her premium because of this collision

Section 941(A) bars an insurer from assigning driving record points, canceling, refusing to issue or renew, or charging a higher premium for motor vehicle liability or collision coverage because the insured was in a collision and was not at fault. The rule has no claim-count threshold and protects collision coverage as well as liability. The exceptions in 941(C) apply only to insureds convicted of vehicular homicide or assault or of driving under the influence, and Rosa has no such conviction.

Reference: 36 O.S. 941(A) and (C)

Correct answer: B. $630 per week for up to 156 weeks

Section 45(A)(1) of the Administrative Workers' Compensation Act pays temporary total disability at 70% of the employee's average weekly wage, not more than the state average weekly wage, for up to 156 weeks: 70% of $900 is $630. Nothing is paid for the first three days of the initial disability period, and an extra 52 weeks is possible only for a consequential injury proved by clear and convincing evidence.

Reference: 85A O.S. 45(A)(1)

Correct answer: C. Choose a physician or chiropractor at the employer's expense

Section 50(A) requires the employer to promptly provide reasonably necessary medical care and gives the employer the right to choose the treating physician or chiropractor. Under 50(B), if the employer fails to provide treatment within five days after actual knowledge of the injury, the employee may select a physician or chiropractor at the employer's expense, and emergency treatment is always at the employer's expense.

Reference: 85A O.S. 50(A) and (B)

Correct answer: A. A $100,000 lump sum and weekly spouse benefits, plus funeral costs up to $10,000

Section 47(C)(1) gives a surviving spouse a $100,000 lump sum plus weekly benefits of 70% of the lesser of the employee's average weekly wage and the state average weekly wage, continuing while the spouse remains unmarried. Section 47(C)(5) requires the employer to pay actual funeral expenses up to $10,000. Children receive separate lump sums and weekly shares under 47(C)(2) and (3).

Reference: 85A O.S. 47(C)(1), (2), (3) and (5)